Renewable power purchase agreements guide

PPAs support the decarbonisation of our electricity grid by providing financial certainty for wind and solar farms.

This guide outlines PPA contracts for electricity and/or green certificates with a renewable energy generator like a wind or solar farm. It outlines the main pricing models, a 6-step guide to procuring a PPA, and several case studies.

Takeaways

• A retail PPA can offer an organisation greater price certainty over a longer period, enhance its brand equity and help it reach net zero emissions faster. 
• A contract term is typically 5 to 10 years. But 3-year contracts are also possible. 
• Most businesses engage an energy consultant to help them negotiate a PPA through an electricity retailer. 
• The 3 main pricing models include: fully firmed (fixed price), partially firmed, and spot exposed. 
• Some organisations join together to form a buyers group. They aggregate their electricity use to enhance their buying power.